[Form 4] LM Funding America, Inc. Insider Trading Activity

Rhea-AI Filing Summary

LM Funding America, Inc. (LMFA) director Frederick J. Mills was granted an option to buy 157,140 shares of common stock at an exercise price of $1.26 per share on 08/27/2025. The option vests in two equal installments: one-half on the 180th day after grant and one-half on the first anniversary of the grant. The option expires on 08/27/2035 and is exercisable for 157,140 shares, which Mills directly beneficially owns following the award.

Positive

• Grant aligns with Non-Employee Director Compensation Plan, linking director incentives to shareholder value
• Vesting schedule delays immediate exercise and encourages retention (one-half at 180 days, remainder at one year)
• Clear Section 16 disclosure filed and signed, meeting reporting obligations

Negative

• Potential dilution of 157,140 shares if options are exercised
• Exercise price set at $1.26; intrinsic value depends on future share price (no current market price provided in filing)

Insights

Compensation Analyst

TL;DR: Routine director equity grant under the company plan; standard multi-year vesting and long-dated exercise window.

This is a typical non-employee director option award under the amended Non-Employee Director Compensation Plan. The grant size and two-step vesting over ~1 year align director incentives with shareholder interests while limiting immediate dilution. The $1.26 exercise price establishes the economic break-even point for the option holder; the 10-year term is standard for stock options. No cash compensation details or performance conditions are disclosed.

Securities Compliance Expert

TL;DR: Form 4 properly reports an option grant and required vesting schedule; filing appears complete for Section 16 disclosure.

The Form 4 shows the required elements: grant date, amount, exercise price, vesting schedule, expiration, and direct beneficial ownership. The filing is signed and dated 08/28/2025. There are no amendments or additional transactions reported. From a compliance standpoint, the report meets Section 16 disclosure norms for insider option awards.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Mills Frederick J

(Last) (First) (Middle)

1200 PLATT STREET

SUITE 100

(Street)

TAMPA FL 33606

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
LM FUNDING AMERICA, INC. [ LMFA ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
	Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
08/27/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$1.26	08/27/2025		A		157,140		(1)	08/27/2035	Common Stock	157,140	$0	157,140	D

Explanation of Responses:

1. Option awards to purchase shares of common stock were granted under the Non-Employee Director Compensation Plan, as amended on November 18, 2022. Shares subject to the options will vest as to one-half on the 180th day after the grant date and as to one-half on the date that is the first anniversary of the grant date.

	/s/ Frederick J. Mills	08/28/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What option award did Frederick J. Mills receive according to the LMFA Form 4?

He received an option to purchase 157,140 shares of common stock at an exercise price of $1.26 per share on 08/27/2025.

When does the option granted to the LMFA director vest and expire?

The option vests in two equal parts: one-half on the 180th day after grant and one-half on the first anniversary of the grant; it expires on 08/27/2035.

How is the ownership reported on the Form 4 for Frederick J. Mills?

The Form 4 reports 157,140 shares beneficially owned following the reported transaction, held directly.

Under what plan were the options granted in the LMFA filing?

Options were granted under the Non-Employee Director Compensation Plan, as amended on November 18, 2022.

Does the Form 4 indicate any amendments or other transactions for this grant?

No. The Form 4 does not report any amendments or additional transactions related to this option grant.